A Study On The International Competitiveness Of China's Industries Based On The Heterogeneity Of Quality

China's international trade has achieved many remarkable achievements in recent years.However,how to enhance commodity quality and international competitiveness of China's industries is still a big problem for the government and the academia.In order to complement researches about the international competitiveness of China 's industries,this paper has reviewed literatures and analyzed the trend of international competitiveness of China's industries.Results of this paper may provide some references about improvement of industries' competitiveness and promotion of national welfare.In this paper,a firm heterogeneity model is constructed to explore the impact of consumers,criticality on quality on an industry.This paper assumes that the consumers on the demand side are dominate to the quality of the goods in the industry,and the quality elasticity of demand is introduced.Through a series of model derivation,theoretical results reflect that consumers' high standards on products' quality could raise the overall productivity entry criteria of relevant industries,which can add consumers'utility and also improve the efficiency of the allocation of resources among relevant industries.In one country,consumers' demand for the quality of goods is positively related with the country's income levels and market size.This paper takes 2002-2014 China's manufacturing industry as a research object,empirical study on the relationship between the main variables is based on panel data.Regression results show that the quality upgrade of commodities is an important source of international competitiveness,consumers with higher standards about commodities could contribute a lot to the enhancement of domestic products' quality,relevant international comparison study also stand up for this result.